Exclusive Content: Pioneering a Circular Economy in Space
How Even New Space Actors Can Drive Major Innovation in Sustainability: A Thought Piece by Matthew Wills – CEO & Co-Founder of Sustain Space
Middle East Space Monitor is pleased to announce the launch of a dedicated theme on Space Sustainability featuring exclusive content from subject matter experts each month.
Pioneering a Circular Economy in Space: How Even New Space Actors Can Drive Major Innovation in Sustainability

Introduction to Circular Economy
The concept of a circular economy, where resources are reused, recycled, and conserved, has transformed numerous industries on Earth, from fashion to food and beverage, material waste and manufacturing. However, its application in the uniquely challenging environment of space is only just taking its first formative steps. A Bain & Company report found executives expect 30% growth in circular economy products and services and that companies that innovate toward circularity will capture new market opportunities. McKinsey & Company also reported that circular economies had substantial cost savings by reducing waste and resource expenditure and increasing product lifecycles. But how can we adopt this for space?
In orbit, the lifecycle of satellites typically ends with de-orbiting, abandonment or disposal in designated graveyard orbits. A circular approach would instead see these satellites repaired, reused, or recycled directly in orbit. This shift could revolutionize how we manage the costly resources involved in space exploration. De-orbiting and allowing satellites to burn up in the atmosphere has been the go-to for those seeking to be responsible, however there is growing concern for the impact on our atmosphere from this practice. There is potential that this is not a sustainable means of operation. Abandonment is clearly not the way to go, as it just means inevitable increase in uncontrolled debris. Graveyard orbits are an option for some but not all and so now this leaves us with the question of what does a truly sustainable space industry look like? Circular economy practices of repair, reuse and recycle may well be the answer, albeit a long-term vision with some major technological hurdles to overcome.
Current State of Space Exploration
Despite longstanding awareness, the space industry has struggled with sustainable practices due to a lack of stringent regulations. Firms like Starlink have taken steps towards sustainability, such as automated collision avoidance and Eutelsat-OneWeb is designed for disposal with docking plates, yet these measures are isolated and not part of a broader regulatory framework. Numerous space agencies are working sustainability requirements for licenses and on the regulations needed to reign in the rampant expansion of our space industry and guide it to a more sustainable growth. There are tens of thousands of satellites due to be launched by governments and businesses, but which jurisdiction’s regulations should they align themselves to? ESA is bringing out it’s Zero Debris Charter, hoping to lead to a future where we see 99% mitigation of debris. The US, through the Space Safety Coalition, promotes post mission disposal within 5 years. As well as this, their Sustainability Strategy is growing the space domain awareness and management markets in what they see as the beginning of a process that will eventually lead to debris removal missions. The UN Committee on the Peaceful Uses of Outer Space (COPUOS) has its own guidelines on mitigation and long-term sustainability and in the UK the Earth-Space Sustainability Initiative (ESSI) is developing a set of industry standards to comply to. What this means is that we have a lot of information coming out of numerous outlets and growing space nations and businesses must try to align themselves in a way that shows commitment to sustainability but does not limit their profitability. In a wild-west industry where many of the sustainable practices are unenforced guidelines, there are some actors that choose to go jurisdiction shopping to benefit their personal circumstances instead of collaborating with an industry in dire need of a cohesive, sustainable route forward. So where do we start? Perhaps looking at the end state will give us an idea of the route forward.
The Route Forward - Technological Trends
Picture this, you launch a satellite on a reusable launcher, it operates successfully for decades, with servicing missions extending life every few years. When it is obsolete it uses the last of its propellant to take it to a designated recycling orbit where its modular design allows recycling satellites to disassemble it, recycle and process the materials. These materials are then distributed to the orbital manufacturing facilities building the next generation of satellites. Oh, and just in case, there are also orbital assistance satellites there to remove you if you unexpectedly fail and need recycling or disposal. Idyllic, right? So, let’s look at what technologies we just used;
Reusable launch vehicles
Highly efficient propulsion
Refuelling service satellites
Active Debris Removal (ADR)
Reliable Rendezvous and Proximity Operations (RPO)
Space tracking and situational awareness
Commonality and modularity in design
Orbital recycling
Robotic manipulation
In space manufacturing
It’s not an exhaustive list but these are the big hitters and a number of them are well on their way to economic success. SpaceX regularly launches and reuses and a number of newcomers plan to do the same. Many propulsion providers are working on the next generation of electric propulsion to ensure we can manage all of the manoeuvres required through life. Orbitfab are building refuelling technology, whilst Astroscale, D-Orbit and Clearspace are working on ADR (all therefore advancing RPO), although the ADR companies are tending to pivot to the servicing market now. Space Forge is about to start manufacturing in orbit. Numerous businesses are working on tracking in space for commercial and military purposes. Orbital robotics are seen on the space stations. Commonality and modularity is rampant in the smaller satellite design space and we are beginning to see inklings of a recycling industry. These aren’t the only players - there are new companies spinning up all the time to tackle these technological developments. It's all new, it’s all exciting and its ripe for disruption. New, burgeoning space nations could feasibly target these areas and become the next big players in the space sector.
Economic and Regulatory Considerations
Regulation and economy really do go hand in hand, especially in space, considering the aforementioned jurisdiction shopping. There is a fine line to tread in ensuring your industry is responsible yet not so overbearing as to prevent any real prospects of growth. A circular economy is really a target for a sustainable future and regulations need to therefore target sustainability, yet coming in quickly and heavy-handedly will scare your businesses away. You cannot expect the industry to be led by morals when we have seen time and time again that unless there is money to be made (or not lost) there will be no change. Government needs to reward good behaviour in the short term. Bring in the carrots (incentives) like accelerated licensing or favourable insurance premiums for those that stick to the sustainability standards and guidelines and then watch as the industry begins to sit up and adopt these over the next decade. The use of a decade here is not by accident. It is a timeframe long enough for companies to adapt to sustainability, or at least begin to. Beyond a decade, they’ve had a chance and if they choose to continue to risk the future of our shared environment then they will get the stick. What form that stick takes could be refusal of launch licenses or something similar. Whatever it is, it needs to be meaningful. We have seen the first ‘punishment’ of a satellite company not behaving in the form of a $150k fine for not de-orbiting. That’s pennies to them but at least it’s a start. The take away here is that whomever begins to regulate first will obtain a seat at the top table in the global discussion of alignment of regulation.
Now let’s look at the money that is in space. It’s potentially a trillion-or-more dollar market in the next decade or so and each of those satellites that goes up is made of valuable materials that cost a lot to get there. If those materials could be sourced in-situ from recycled satellites then they would offer a tantalising prospect to the manufacturers of tomorrow. A circular economy would lead to whole recycling and manufacturing operations in orbits that are designed not to impinge on the operations of others. There’s money to be made in the manufacturing and there’s money to be saved for those that want to build new satellite missions. If this material processing and manufacturing behemoth is established it is also likely to contribute to and benefit from future space-based mining missions that come with the promise of quadrillions of dollars of materials. It’s a long way off but it’s a step in the right direction and the early adopters of the first technological advances will likely see significant Return On Investment (ROI).
Conclusion
Currently we sit in an industry that struggles to see the vast potential of sustainability, as they are blinkered by short term strategy. A circular economy is a necessity born out of the ever-increasing risk of our single use, disposable approach to space. It is when we look out to long term risks of inaction that we see the reward from early investment. Space is not an industry full of quick and vast ROIs. Technology and regulation do not happen overnight, however in the current confusion there is opportunity for even the smallest voices to influence the outcomes if they take a risk. We may not see the bank balance increase tomorrow but in 10 or 20 years we’ll be thanking ourselves for taking the first small steps.